HomeMy WebLinkAboutItem 11 - Certificates of ObligationITEM * — L
1 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER,`
MEETING DATE: OCTOBER 17, 2000
SUBJECT: RESOLUTION DIRECTING PUBLICATION OF NOTICE OF
INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
RECOMMENDATION:
City Council to consider approving a resolution directing the publication of a Notice of
Intention to issue Combination Tax and Revenue Certificates of Obligation, Series 2000A.
FUNDING SOURCE:
Future issue of Certificates of Obligation for the purpose of construction of certain public
improvements and acquisition of equipment.
BACKGROUND:
This item is placed on the Council agenda pursuant to direction from Bond Counsel in
order to meet necessary requirements for selling Certificates of Obligation. Funding from
the sale of certificates will be used for financing $7,805,000 of public improvements and
equipment acquisition. Listed below are the projects to be funded with the Certificate of
Obligation sale:
Storm Drainage Utility System Improvements (creeks 17 and 23) $4,205,000
Main Street Construction 1,000,000
Downtown Parking Garage 250,000
Equipment Acquisition (authorized equipment in FY 2001 Budget) 2,350,000
Issuance Costs 55,000
Total $7,860,000
If approved by the Council, the required notice will be published on October 19 and
October 26, 2000.
Staff recommends approval.
WAGlcjc
H:Agmnot1ceofintent2000
October 12, 2000 (10:14AM)
0 RESOLUTION NO.
A RESOLUTION RELATING TO THE GIVING OF NOTICE OF
INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2000A AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas (the "City"), pursuant to
Section 271.041-.063, Texas Local Government Code, as amended, is authorized to issue
its certificates of obligation for the purpose of paying contractual obligations to be incurred
for the purposes set forth below; and
WHEREAS, the City Council of the City has found and determined that a notice of
intention to issue certificates of obligation should be published in accordance with the
requirements of applicable law;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, THAT:
Section 1. The findings and determinations set forth in the preambles hereto are
hereby incorporated by reference for all purposes.
Section 2. The City Secretary of the City is hereby authorized and directed to
issue a notice of intention to issue certificates of obligation in substantially the following
form:
"NOTICE OF INTENTION TO ISSUE CITY OF
GRAPEVINE, TEXAS COMBINATION TAX AND
REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2000A
"NOTICE IS HEREBY GIVEN that on November 7, 2000, the City Council of the City
of Grapevine, Texas, at 7:30 p.m. at a regular meeting of the City Council to be held at the
City Hall, 200 Main Street, Grapevine, Texas, the regular meeting place of the City
Council, intends to pass an ordinance authorizing the issuance of not to exceed
$8,000,000 principal amount of Certificates of Obligation for the purpose of paying
contractual obligations for: (i) construction, repairs, improvements, equipment and
upgrades to the City's storm drainage system; (ii) authorized capital needs of the City, to
wit: (a) computer equipment, (b) security systems, (c) fire safety equipment, (d) street
maintenance equipment; (e) police department office furniture; (fl park and golf course
maintenance equipment, (g) water and wastewater equipment, and (h) City vehicles;
(iii) construction, improvements, resurfacing and repairs to Main Street; (iv) engineering
and design work for a parking garage to be located in the downtown area of the City
(collectively, the "Project"); and (v) to pay for professional services of attorneys, financial
advisors and other professionals in connection with the Project and the issuance of the
Certificates. The Certificates shall bear interest at a rate not to exceed fifteen percent
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(15%) per annum, and shall have a maximum maturity date of not later than forty (40)
years after their date. Said Certificates shall be payable from the levy of a direct and
continuing ad valorem tax against all taxable property within the City sufficient to pay the
interest on this series of Certificates as due and to provide for the payment of the principal
thereof as the same matures, as authorized by Section 271.041-,063, Texas Local
Government Code, as amended, and from all or a part of the surplus revenues of the City's
waterworks and sewer system, such pledge of surplus revenues being limited to $ 1,000.
"THIS NOTICE is given in accordance with law and as directed by the City Council
of the City of Grapevine, Texas.
"GIVEN THIS October 17, 2000.
/ s / Linda Huff
City Secretary
City of Grapevine, Texas"
Section 3. The foregoing notice shall be published once a week for two
consecutive weeks, the date of the first publication being not less than the fourteenth
(14th) day prior to the date set forth in the foregoing notice for passage of the ordinance
authorizing the Combination Tax and Revenue Certificates of Obligation. Such notice
shall be published in a newspaper of general circulation in the area of the City of
Grapevine, Texas.
Section 4. That this resolution shall take effect from and after the date of its
passage.
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0 PASSED, APPROVED AND EFFECTIVE October 17, 2000.
ATTEST:
City Secretary, City of Grapevine, Texas
Mayor, City of Grapevine, Texas
APPROVED AS TO FORM:
By
City Attorney, City of Grapevine,
Texas
Signature Page for Intent Resolution